In today’s economy, customers expect to seamlessly switch between various communication channels within the same interaction. This is particularly true in retail and eCommerce, where the provision of a secure omnichannel shopping experience is essential. And in 2024, the rapid pace of technological change and fierce competition in the consumer economy are increasing expectations for seamless experiences, compelling retail and eCommerce organizations to reimagine their customer management strategies.
Hence, the retail industry is spending significantly on AI technologies. But there’s a plot twist to this developing AI story. According to TP’s Business Insights Lab’s new Global Insights B2C survey, even as the pursuit of innovative approaches to support continues apace, only 7% of eRetail consumers prefer automated or AI bot customer support as opposed to receiving help from a human being, while 61% strongly prefer human assistance and 32% indicate it depends on the situation. [1]
In fact, the survey also reveals that despite the recent hype surrounding genAI, the percentage of consumers contacting their brands through chatbots (automated or genAI-powered bots) has not increased since 2022. [2] And in 2024, although genAI is helping empower chatbots in online environments to manage service requests, only 28% of consumers agree that AI bots improve customer support. [3]
Three Key Developments
Three key developments are impacting the retail and eCommerce sector in an age of customer-centricity and digital transformation:
- Augmented Agents. The advent of large language models is super-charging the trend toward hyper-personalization. Human agents are becoming augmented agents—providing highly-personalized support with the assistance of uniquely designed AI tools that automate repetitive tasks and empower the human touch.
- Buy Now, Pay Later (BNPL) Loans. Credit rating agency Moody’s projected that the total value of transactions funded by buy now, pay later (BNPL) loans exceeded $300 billion in 2023. That momentum continues as shoppers seek ways to break purchases into manageable amounts due to higher inflation. As a result, over one-third (36%) of merchants are implementing BNPL payment methods to offer customers.
- Fraud Detection & Prevention. Machine learning is being deployed to assist with intelligent payment routing and fraud management, with online merchants utilizing fraud detection tools to augment everything from chatbots to connected devices. Large enterprises are taking considerable advantage of these tools while small and medium-sized businesses (SMBs) are also leveraging them in increasing numbers.
TP’s Engagement Strategy (Retail, eCommerce, CPG, QSRs)
With a secure foundation at the core of its operating principles, TP focuses on integrating and improving the best of the four worlds of retail, eCommerce, consumer packaged goods (CPG), and quick service restaurants (QSRs) by leveraging a “360-degree strategy” comprised of BPO, technology and analytics, and transformation consultancy.
By using AI to automate repetitive tasks, human agents can become augmented agents that focus on providing personalized support while having access to AI tools designed specifically for them. This shift enables companies to offer highly personalized and efficient customer experiences, with proactive recommendations aimed at boosting sales, decreasing returns, and strengthening customer relationships.
As consumer demand for BNPL loans remains strong, a more diverse and inclusive economy will benefit from the rise of the impending Gen Alpha spending powerhouse, which is sure to reshape tomorrow’s consumer landscape. And according to TP, “The rapid pace of innovation seen in the last few years has prompted the emergence of new digital channels and tools, providing consumers with more options than ever before. At the same time, the evolution of technology creates more than digital engagement opportunities between brands and consumers.” [4]
For more on innovation within the technology industry, see the new report, RETAIL & eCOMMERCE TRENDS: NAVIGATING A FAST-MOVING CONSUMER ECONOMY, a TrendzOwl Industry Spotlight Report in Partnership with Teleperformance.
[1] Interview with Teleperformance Retail & eCommerce Team, June 25, 2024.
[2] Teleperformance Business Insights Lab, Global Insights Survey, 2024, slide 14.
[3] Teleperformance Business Insights Lab, Global Insights Survey, 2024, slide 36.
[4] Teleperformance, Business Insights Lab, “The Digital Shift: Keeping Up with the Evolving Customer,” p. 2.
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